School bond and tax elections in New Jersey

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School bond and tax elections in New Jersey are held under three different circumstances:

• To approve a school district's annual budget which is mandated for all districts.
• For issuing bonding for new construction and capital improvements.
• If a school district has an excess levy.

Laws affecting school finance

New Jersey school budget law

Under New Jersey law, all school districts are required to put a ballot question to approve a school district's operating budget for the year^[1]. This election happens during the annual school election in April. In 2009, 73 percent of New Jersey school districts approved their budgets^[2]. If a school district fails its budget election, then the school board must re-convene two days after the election. The school district has until May 19th to approve a new budget that would be approved by the voters during the next regularly scheduled school election^[3].

New Jersey bond issue law

Under New Jersey law, a ballot question is required if any school district seeks to issue new bonding for capital improvements for improving existing facilities or to build new facilities. Under New Jersey law, there are two funds for education-related bonding being issued. The main fund is the New Jersey Public Schools Loan Assistance Fund. The law which was approved by the New Jersey Legislature and former Governor James Florio in 1993 is considered the main levy fund^[4].

Under the Public Schools Loan Assistance Fund, school districts upon voter approval seek bonding to be used for renovations, capital improvements, and new construction. Under New Jersey law, school districts are charged anywhere from a minimum of twenty-five to a maximum of fifty percent interest. The New Jersey Legislature is required to have $105 million on hand at minimum to guarantee bonding for school districts at all times^[4].

Another loan fund that issues bonds to school districts that requires voter approval is the New Jersey Public Schools Code Compliance Loan Fund. This separate fund that was approved in 1993 at the same time the New Jersey Public Schools Loan Assistance Fund by the New Jersey Legislature and former Governor James Florio. This fund is designed for school districts that need to renovate older buildings in order to be compliant with state and federal laws on school buildings. This includes asbestos removal, replacing HVAC equipment, or any other purpose to be compliant with state and federal health regulations^[5].

New Jersey levy limitation law

Under the law the levy limitation is calculated including the sum of the previous year's adjusted tax levy and the adjustment for increases in enrollment multiplied by four percent. Then the result takes in adjustments for a reduction in total unrestricted State aid from the previous budget year and the yearly increase in health care costs. Recent changes to the formula include beginning in the 2008-2009 school year an addition of funds waived by the State Commissioner of Education against the formula. Beginning in 2011, school districts must add normal and adjusted pension liabilities to their levy limit. The current formula was passed in 1997 by the New Jersey Legislature. The commissioner Waiver provision to the law was passed in 2007. Governor Jon Corzine and the New Jersey Legislature approved the Pension Liability addition provision in 2009^[6].

In New Jersey, the Commissioner of Education must require any request from a school district to exceed the levy limitation. If a school district cannot get the Commissioner's approval, then they can use the Commissioner Waiver provision in the New Jersey levy limitation law to put a ballot question for voter approval^[6].

Under New Jersey law, school districts are limited on how they can use the levy extension for these reasons:

• If a school district is ruled to not meet standards under the No Child Left Behind Act of 2001.
• Energy cost increases over the pre-budget year in excess of four percent.
• Capital outlay increases, less any withdrawals from the capital reserve account over the pre-budget year in excess of four percent.
• The appropriation of non-recurring general fund revenues in the pre-budget year original budget, including the appropriation of surplus.
• Increases in insurance costs over the pre-budget year in excess of four percent.
• Increases in transportation costs required to service hazardous routes over the pre-budget year in excess of four percent.
• Increases in special education costs that exceed $40,000 per each special education pupil over the pre-budget year in excess of four percent.
• Incremental increases in costs associated with opening a new school facility in the budget year^[6].

Conduct of the bond election, limitations, rules

Authority conducting elections

All elections are conducted by a County Election Commission.

Election dates

New Jersey school districts are barred under state law from holding special elections. School districts can only hold elections on ballot questions on dates specified by law. These dates are the final Tuesday in September, the second Tuesday in December, the fourth Tuesday in January, the second Tuesday in March, and the Annual School Election on the third Tuesday in April.

Needed majority

For a ballot question involving exceeding limits under the levy limitation law, a three-fifths (60%) super-majority vote is required for passage. For bond issues and to approve the annual school district budget, a simple majority is only required.

Wording of measures

Under New Jersey law, any ballot questions shall be presented in simple language that can be easily understood by the voter^[7]. There is no ballot format requirement like if a question should end in yes or no, placement on the ballot, or what color paper a ballot question needs to be on.

Required notice of bond election

Under New Jersey law, if a levy limit election is needed a 60 day emergency order from the State Department of Education must be instituted before any levy election can take place^[8]. A minimum of thirty days is necessary to elapse under New Jersey laws before any construction election once a district receives approval from the State Commissioner of Education ^[9]. School districts must seek approval from the State before conducting any Election.

List of 2009 New Jersey school bond referendums

The following are school bond referendums that were held during 2009 in New Jersey. All results are provided by the New Jersey School Boards Association.

External links

• New Jersey Department of Education
• New Jersey School Boards Association
• New Jersey School Boards Association election database

References

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